AUTOMOTIVE INSURANCE EXPOSED

TABLE OF CONTENTS | EXPOSED | Author: Graham McDonagh | Published: 2020

I N D E X
PUBLISHING INFORMATION i
PREFACE ii
CONTENTS iii
ACKNOWLEDGEMENTS iv
CHAPTER 1: INTRODUCTION
Global Rationalisation
Corporate Psychopaths
The Insurance Industry
Automotive Insurance Rationalisation- Consumer Effects
Consumer Consequences
Consumer Knowledge and Protection 
1
3
4
6
8
9
CHAPTER 2: INSURANCE & SMASH REPAIR HISTORY
Early Insurance Collusion
Corporate Culture
Insurance Power and Control – The beginning
Smash Repair History

Industry Practice
Rationalisation Pressures
Funny Time Funny Money (FTFM) The Start
Technology Advancement
11
14
17
20
22
23
24
29
CHAPTER 3: INSURANCE RATIONALISATION
Shifts of Power
Corporate Acquisitions
AAMI: The Game Changer
Consumer Control Contracts
Repair Wars and Damaged Reputations
33
35
36
41
43
CHAPTER 4: NRMA | IAG –TROUBLES & FAILURE
Public Listing
The Wollongong Experiment: Failure
Competitive Partnering Repair Program: Abandoned
Preferred Smash Repairer Scheme: Failure
Online Repair Management Scheme: Failure
Web-based Repair Management: Abandon
51
56
58
60
63
64
CHAPTER 5: INSURANCE CONTRACTUAL CONTROL
Smash Repair Industry Categorisation
Insurance Repair Contracts
Control of Parts Prices
Insurance Control Repercussions
Third Party Recovery
Historical Perspectives
71
76
80
81
81
84
CHAPTER 6: COMMISSIONS & ENQUIRIES
Overview
Industry Commission Inquiry Report No. 43: 25 March 1995
AARA v NRMA 2002
Australian Competition and Consumer Commission 2003
HIH Royal Commission 2003
Productivity Commission Inquiry Report No. 34: 2005
N S W Parliament Stay-Safe Committee 2005
State Parliamentary Inquiries (NRMA/IAG, Suncorp, Allianz)
NRMA/IAG
Suncorp Group
Allianz Australia
Banking Royal Commission 2018
ASIC Report: 621. 2019
87
89
91
94
98
103
113
123
124
126
133
139
146
CHAPTER 7: ETHICAL ISSUES
Propaganda and Puffery
Insurance Marketing Myths
Smash Repair Probity
Insurance Probity Issues
The Fallacy of Consumer Benefits
149
153
155
158
164
CHAPTER 8: AUTOMOTIVE INSURANCE
General Insurance
Automotive Insurance Perspectives
Types of Insurance
Purchasing Insurance
Insurance Policy Conditions
169
171
172
173
176
CHAPTER 9: AUTOMOTIVE INSURERS
Overview
The Suncorp Group
Insurance Australia Group (IAG)
Other Insurers
Motoring Associations
Automotive Retail Branded Insurance
Policy Purchase: Claim Protection 
181
183
185
188
191
192
192
CHAPTER 10: THE CLAIM PROCESS
Overview
Nominated Repairer Rights
Insurance Repair Steerage
Assessment Process
The Tender Process
Infield Assessment
Desktop Assessment
Batch Bulk Bill Repair Contractors
195
196
197
200
200
201
202
203
CHAPTER 11: CLAIMS ASSESSMENT METHODOLOGY
Overview
The Demise of the Infield Assessor
Insurance Boiler-room Assessment Adjustment
Claim Cost Reduction Clerks
The Milgram Study
Repair Methods 

Parts Protocols
Repair Categories
Repair Standards and Rates
205
206
207
209
213
214
215
216
219
CHAPTER 12: ACCIDENT CLAIMS: LIABILITIES & PROTECTION
Liability Issues
All Insured
At Fault Party Insured
At Fault Party Uninsured
Third Party Claim Protection
Total Loss Settlements
Choice of Repair Policy Option to Cash Settlement
Insurance Claim Rejection 
223
224
225
226
229
230
231
232
CHAPTER 13: TRICKS & TRAPS
Advertising
Cheap Insurance
Standard Form Contracts
Unfair Contract Terms: Repair Choice
Insurance Claim Steerage
Determination Against Insurance Assessment Practice
Insurance Claim Procrastination
Repair Methods
Non Genuine Aftermarket Parts
Lifetime Repair Warranty

Rental Vehicle Rights
Policy Renewals
Policy Bracket Creep
At Fault Insurance: Repair Offers
Cash Settlements: The Great Escape
Repair Quality: Unfair Enrichment Penalties
233
234
235
241
243
244
245
246
246
247

248
249
251
251
252
254
I  N  D  E  X   [ C O N T D ]
CHAPTER 14: PREDITORY PRACTICES

Policy Changes
Add-On “Junk” Insurance
Insurance Semantics
Smash Repair Quotes and Photo’s: Copyright Abuse
Allianz and ASIC: Present Problems
FTFM: The Cost Reduction Clerks Favorite
Insurance Corporate Culture
Smash & Grab, the Suncorp Capital SMART Story
IAG Smash Repair Steerage and Control
IAG Choice of Repairer
IAG: Drop and Go
IAG: The Repair Hub Project

255
257
258
262
265
265
267
271
288
289
290
291
CHAPTER 15: DISPUTE RESOLUTION
Overview
Australian Financial Complaints Authority (AFCA)
Complaint Format
Contracted Parties
Retrospective Complaints
The Smash Repairer: The Customers Friend
Australian Securities and Investment Commission (ASIC)
Insurance: Misleading Conduct Claims
295
295
297
298
299
299
301
304
CHAPTER 16: CONCLUSIONS
Consumer Power
Dealing with the Insurer
Smash Repair Dispute Resolutions: Shortcomings
The Case for Copyright Research
A Perspective Approach
305
306
309
310
311
REFERENCES

General
Media Releases

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